FX.co ★ Trading plan for EURUSD on August 28, 2023

Technical outlook:

EUR/USD continued its drop on Friday printing the 1.0760 lows before pulling back to 1.0800 to end the week. The single currency pair was quiet on Monday during the Asian session as the price traded around 1.0810. The projected targets point towards 1.0600 and possibly 1.0500 as marked on the daily chart here.

EUR/USD took out initial support around 1.0830 last week; hence, a pullback cannot be ruled out. The larger-degree wave structure suggests that any pullback should be well capped below the 1.1275 resistance. The entire upswing between 0.9535 and 1.1275 could be possibly retraced and the price could drop through 1.0200 going forward.

EUR/USD has also broken below its one-year trend line support as presented on the chart here, which adds further confidence to the bearish setup towards 1.0600. A meaningful corrective rally could materialize thereafter, pushing prices towards the 1.1000-1.1100 area before turning lower again. The instrument is likely to remain bearish against 1.1275.

Trading idea:

Potential bearish continuation towards 1.0600.

Good luck!